The Board of Investment (BOI) of Sri Lanka has certified the registration of its Agreement with Sahasdhanavi Limited, advancing the development of a 350 MW RLNG/Diesel Operable Combined Cycle Power Plant at the Kerawalapitiya Industrial Zone.
According to a BOI statement, the project represents a total envisaged investment of US$ 291.19 million and is expected to create 1,147 new jobs once fully operational.
The project is scheduled for completion within 42 months of the Agreement date.
The Agreement, registered under Section 17(2) of BOI Law No. 4 of 1978, underscores Sri Lanka’s drive to attract high‑value investment into strategic infrastructure and strengthen national energy security.
The investment breakdown includes US$ 90.00 million in share capital, US$ 196.19 million in loan capital, and US$ 5.00 million from other sources, allocated to fixed assets and working capital.
Developed on a Build‑Own‑Operate‑Transfer (BOOT) basis, the plant will supply electricity directly to the National Grid in two phases:
- Phase I: Gas turbine generating 243 MW using LNG (213 MW using diesel)
- Phase II: Steam turbine generating 107 MW using LNG (105 MW using diesel)
Initially operating on diesel, the plant is designed to transition to Regasified Liquefied Natural Gas (RLNG) once national infrastructure is in place, supporting a cleaner fuel mix and more reliable power supply.
Kerawalapitiya is already home to the 350 MW Sobadhanavi and 300 MW Yugadhanavi combined cycle plants. With Sahasdhanavi, the area’s combined generation capacity will reach around 1,000 MW, reinforcing its role as a principal power hub and signaling sustained investor confidence in Sri Lanka’s energy sector.
Beyond electricity generation, the project is expected to deliver wider economic benefits across construction, engineering, procurement, manufacturing, logistics, and related services, while enhancing the technical expertise of the local workforce. (Newswire)